On Monday U.S dollar rose at the start of trading week to continue to recover from the lowest level in seven weeks recorded last Friday because investors believe that the wave of selling of the U.S. currency reached to the extent exaggerated expectation and that the data will be released this week will point out an improvement in the U.S. economy.
In contrast, recorded European currencies, the euro and the pound sterling bearish gaps with the opening of trading this week. The Japanese yen fell after lower-than-expected data showed slower growth in the world's third-largest economy in the second quarter, while the Australian dollar recorded its highest level in nearly two weeks. U.S. dollar Dollar index ended trading on Friday down 0.3 percent, with a fifth day of losses in the longest continuous daily series loss since the middle of last June, its lowest level in seven weeks 80.86 points, and its lowest level since June 19.
The index pared losses with the end of trading on Friday amid profit-taking with expectations that the wave of selling overpriced considering that the Federal Reserve is likely to be the first among central banks, which would reduce the incentives. With the opening of trading this week, Dollar Index continues reduce losses and then recover from the lowest level in seven weeks, amid expectations that the U.S. data shows this week an increase in retail sales and consumer price inflation, which reinforces expectations that take the U.S. central step in the coming months to reduce its program of stimulus cash. Scarce important data for the U.S. economy on the economic agenda for the day with the exception of the Federal Budget for the month of July is expected deficit of 95.3 billion dollars compared to the previous reading, which recorded a surplus by 116.5 billion dollars.
Trading dollar index was at 05:36 GMT on 81.12 points, after recording the highest level at 81.17, and the lowest level of 80.93. Euro Dropped the single European currency on Friday by 0.3%, to continue to decline from the highest level in nearly two months recorded $ 1.3400 on Thursday. This retreat is supported by profit-taking in light of the continuous rise of the European currency over five consecutive weeks.
With the opening of trading this week and during the Asian session, the euro's bearish gap under the logical continuation of the correction on the European currency. The European data is absent from the economic agenda for the day. The pair euro against the U.S. dollar is trading at 05:45 GMT around 1.3323 after recording the highest of 1.3345 and the lowest 1.3317 . Sterling The Royal Pound achieved a fall by 0.2% against the U.S. dollar on Friday as part of a natural correction after the arrival of the pound to its highest level in seven weeks of $ 1.5574. With the opening of trading sessions this week, Pound scored a bearish gap against the U.S. dollar in a sign of the continuity of profit-taking and correction in the absence of data from the United Kingdom on the agenda for the day. This pair is trading at 05:49 GMT around the 1.5490 level after recording the highest of 1.5520 and the lowest 1.5481. Japanese Yen The Japanese currency fell on Monday against all major currencies due to the release of GDP data for the second quarter, which showed slower growth in the world's third-largest economy.
Came the initial reading of GDP for the second quarter to record growth of 0.6%, less than forecast which indicated a growth of 0.9%, lower than the previous reading for the first quarter, which recorded growth of 1.0% adjusted growth of 0.9%. Yen fell against U.S. dollar and pound sterling and fell from the highest level in the month of 127.95 euros. Yen was ended trading on Friday up 0.5 percent against the dollar, and rose by 0.75 percent against the euro, increased by about 0.6 percent against the Sterling. U.S. dollar against the Japanese yen is trading at 05:56 GMT around the 96.52 level after recording the highest of 96.63 and the lowest 95.92.